Regulations play a significant role in shaping trading practices by: 1. Establishing Standards: Setting standards for fair trading to protect market participants. 2. Ensuring Transparency: Mandating disclosure of relevant information to ensure market transparency. 3. Preventing Fraud: Implementing measures to prevent fraudulent activities and market manipulation. 4. Protecting Investors: Safeguarding investors' interests through various compliance requirements. 5. Promoting Stability: Ensuring market stability by imposing rules that mitigate systemic risks.